Provider gets buy-in from investor
WILMINGTON, N.C. – 101 Mobility CEO Dave Pazgan says a recent capital infusion by a private equity firm is just what his company needs to grow to its full potential.
“It’s important if we’re going to grow quickly that we have the resources we need to get it done,” said Pazgan, who founded the company in 2010.
In May, 101 Mobility entered into an equity partnership with New York-based Cortec Group, the same firm that acquired Harmar Mobility in July 2012. 101 Mobility offers accessibility products, like lifts and ramps, to customers and the Veteran’s Administration. Pazgan and the rest of the management team will remain in place.
Terms of the deal were not disclosed, but Cortec Managing Partner Jeff Lipsitz says 101 Mobility has the firm’s full support.
“We have plenty of available capital and they have a great plan,” said Lipsitz. “We got involved specifically to help them grow.”
With Cortec’s help, Pazgan sees 101 Mobility growing from its current 30 franchises to 100 in 2014. Part of the firm’s investment will go toward advertising to potential customers and franchisees.
“We want to grow, but we’ll still be selective,” Pazgan said. “We want the right people in the program—we don’t want to bring someone on who wouldn’t be a good partner.”
Cortec isn’t new to the HME industry. The firm has invested in 20 different healthcare companies in the past 10 years, many of them in HME. Lipsitz says the growing population of baby boomers makes investing in home health care, in general, and 101 Mobility, in particular, a good bet.
“There isn’t a branded player selling products in this space,” he said. “This is a place where the trends are all toward growth for the foreseeable future.”